New Direct Express Debit Mastercard for Federal Benefits

H08 - 073– Information

October 16, 2008

TO: / Home and Community Services (HCS) Division Regional Administrators
Area Agency on Aging (AAA) Directors
FROM: / Bill Moss, Director, Home and Community Services Division
SUBJECT: /

New Direct Express Debit MasterCard for Federal Benefits

Purpose: / To inform staff of a new debit MasterCard available to people without bank accounts to access federal benefits
Background: / Nearly four million Americans receiving Social Security and SSI payments do not have bank accounts. Many get their payments by paper check which is vulnerable to weather delays, theft, and loss. The new Direct Express card, which is being issued by Comerica Bank and MasterCard provides a safe, convenient option for receiving monthly federal benefit payments.
WHAT’S NEW, CHANGED, OR CLARIFIED / A new debit MasterCard is being encouraged by the US Department of Treasury as a safer, more reliable payment option for clients who currently receive their benefits via paper check.
The following are free services associated with the card:

Purchases at retail locations, cash back with purchases, or cash withdrawals through bank or credit union tellers;
One ATM case withdrawal for each deposit posted to the account each month. (There is a $.90 cent charge per additional withdrawal. Unused withdrawals carry over into the next month. Surcharge fees at ATMs may also apply.)
Balance information at ATMs, by phone or online;
Optional notification of deposits to debit card by phone, email or text message;
Optional low balance alert when the account balance falls below a certain level;
Access to the toll-free customer service number and website 24 hours a day, 7 days a week.
One free replacement card per year (additional cards are available for $4).

Service fees are charged for the following optional services:

More than one ATM withdrawal per deposit (see 2nd bullet above).
Card replacement after one free card replacement per year;
Monthly paper statements mailed to the cardholder ($.75 cents per month).

ACTION: / None. Information only. Clients may begin to receive information about this option. For more information about the Direct Express card, see the website under Related References below.
Related
REFERENCES: / More information on Direct Express:
ATTACHMENT(S):
CONTACT(S): / Bea Rector
(360) 725-2527